When it comes to residential leasehold premises in Hambleton, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Hambleton with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has under 80 years left, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Hambleton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Hambleton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hambleton valuers.
Last Spring Stanley, came critically near to the eighty-year threshold with the lease on his one bedroom apartment in Hambleton. Having bought his flat two decades ago, the lease term was of little bearing. Thankfully, he became aware that he needed to take action soon on Extending the lease. Stanley extended the lease at the eleventh hour last April. Stanley and the freeholder in the end agreed on an amount of £5,500 . If the lease had dipped lower than eighty years, the amount would have escalated by a minimum £975.
Mrs J Wilson completed a one bedroom flat in Hambleton in March 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Hambleton with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease ended on 10 May 2084. Given that there were 59 years outstanding we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including legals.
Mr and Mrs. N Cooper took over the lease of a ground floor flat in Hambleton in July 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative residencies in Hambleton with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated on 21 October 2095. Taking into account 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.